Bulls made a roaring comeback on
Wednesday's trading session, with Sensex and Nifty closing with gains of more
than a percent each. After a positive start, the markets remained in green
terrain throughout the day, as the Reserve Bank of India (RBI) decided to
infuse more liquidity into market. It will buy government securities under Open
market operations (OMOs) for an aggregate amount of Rs 25,000 crore in May 2019
through two auctions of Rs 12,500 crore each. But, gains were limited, amid
credit rating agency, Care Ratings' latest report warning that a spike in crude
oil prices by 10 percent owing to the US sanctions on Iranian crude exports can
result in a 0.40 percent widening of the current account deficit (CAD), which
can subsequently play out into a 3-4 percent fall in the rupee and also push up
inflation by 0.24 percent. Further, key indices gained traction in the dying
hours of the trade, buoyed by Fitch Ratings' report indicating that the RBI is
the first central bank in the Asia-Pacific region to begin an explicit interest
rate easing cycle buoyed by benign food inflation and easier global financial
condition. Some support also came with a
report that around 3.10 crore small farmers have so far received the first
tranche of Rs 2,000 each under the PM-Kisan scheme and 2.10 crore peasants have
got the second installment as well, costing Rs 10,500 crore to the exchequer.
The market participants took note of another report that the Ministry of
Corporate Affairs plans to start gathering primary data from persons who have
put in their money in chit funds and deposit-taking schemes, amid continuing
efforts to clamp down on illicit fundraising activities. Finally, the BSE
Sensex gained 489.80 points or 1.27% to 39,054.68, while the CNX Nifty was up
by 150.20 points or 1.30% to 11,726.15.
The US markets ended lower with
cut of around quarter percent on Wednesday, a day after the S&P 500 and
Nasdaq carved out their first records in months, following earnings from
high-profile companies, including Dow components Boeing and Caterpillar Inc.,
that offered a mixed picture of American corporations. A mixed batch of
earnings reports from big-name companies such as Boeing (BA), Caterpillar (CAT)
and AT&T (T) also contributed to the choppy trading on Wall Street. A light
day on the US economic front also kept traders on the sidelines ahead of the
release of reports on weekly jobless claims, durable goods orders and first
quarter GDP in the coming days. Corporate quarterly results remain in focus for
markets midweek. More than a fifth of the S&P 500 constituents have
reported results, with nearly 80% of those companies producing earnings results
that topped street's consensus estimates, compared with about 65% in the fourth
quarter. To be sure, that reflects lowered estimates heading into the quarter
amid worries about a recession and anemic growth outside of the US, amplified
by a trade spat between Washington and Beijing. Dow Jones Industrial Average
declined 59.34 points or 0.22 percent to 26597.05, Nasdaq dropped 18.81 points
or 0.23 percent to 8102.02 and S&P 500 was down by 6.43 points or 0.22
percent to 2927.25.
Crude oil futures ended lower on
Wednesday, with a hefty gain in weekly domestic crude stockpiles prompting the
first loss in four sessions. The Energy Information Administration (EIA)
reported that US crude supplies rose by 5.5 million barrels for the week ended
April 19. Analysts polled by S&P Global Platts expected a decline of
500,000 barrels. The American Petroleum Institute on Tuesday reported an
increase of 6.9 million barrels. However, Brent oil futures managed to finish a
few cents higher as energy-market participants assessed the likelihood of
producers quickly ramping up supply in response to tougher US action against
Iran's oil market. Benchmark crude oil futures for June declined 41 cents or
0.6 percent to settle at $65.89 a barrel on the New York Mercantile Exchange.
However, June Brent crude added 6 cents or less than 0.1 percent to settle at
$74.57 a barrel on London's Intercontinental Exchange.
Indian rupee ended lower against US dollar on Wednesday,
due to higher demand for the greenback from importers. Traders remain concerned
with Care Ratings' latest report warning that a spike in crude oil prices by 10
percent owing to the US sanctions on Iranian crude exports can result in a 0.40
percent widening of the current account deficit (CAD), which can subsequently
play out into a 3-4 percent fall in the rupee and also push up inflation by
0.24 percent. A strengthening US dollar against major global currencies also
affected rupee's trading pattern. However, an encouraging rally in domestic
equities along with easing crude oil prices - after hitting 2019 highs recently
- kept the downside in check. On the global front, euro fell towards a
one-month low on Wednesday as the contrast between solid economic data in the
United States and souring confidence measures in the euro zone kept the dollar
supported near 22-month highs. Finally, the rupee ended at 69.86, 24 paise
weaker from its previous close of 69.62 on Tuesday.
The FIIs as per Wednesday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 3536.46 crore against gross selling of Rs 3703.36 crore, while
in the debt segment, the gross purchase was of Rs 510.37 crore with gross sales
of Rs 1684.54 crore. Besides, in the hybrid segment, the gross buying was of Rs
1.45 crore against gross selling of Rs 2.41 crore.
The US markets ended lower on
Wednesday, as investors digested a batch of mixed earnings reports. Asian
markets are trading mostly in red on Thursday as a surprise deterioration in
German business morale rekindled fears of slowing global growth. Snapping
three-day losing streak, Indian markets gained momentum and ended higher with
gains of over a percent on Wednesday, as earnings optimism outweighed concerns
over elevated oil prices. Today, the start of the F&O series expiry session
is likely to be slightly negative tailing the weakness in Asian peers. Besides,
lots of volatility may be seen towards the expiry of April series as traders
rollover their positions. However, some relief may come with report that giving
relief to composition scheme taxpayers under the GST, the finance ministry has
allowed such businesses to file self-assessed tax return on quarterly basis in
a simplified form. In yet another simplification, the Goods and Services Tax
(GST) Council has added flexibility into the way a company can utilise the
available input tax credit. Any company would now be eligible to use credit
available against paid integrated GST (IGST) to set off tax liabilities of
state GST (SGST) and central GST (CGST) in any proportion and in any order.
Moreover, the Finance Ministry has introduced changes in the e-way bill system,
including auto calculation of distance based on PIN codes for generation of e-way
bill and blocking generation of multiple bills on one invoice, as it seeks to
crack down on GST evaders. There will be some buzz in the banking sector with
report that the RBI has directed banks to disclose loans outstanding to
Infrastructure Leasing & Financial Services and the provisions required to
be made against the exposure, in their notes accompanying their fourth-quarter
financial results. The RBI wants banks to disclose the total loans outstanding
as well as the percentage of loans that are non-performing as per the Income
Recognition and Asset Classification (IRAC) guidelines but not yet classified
as NPAs. There will be some reaction in telecom sector stocks with ICRA's
report that the wireless broadband subscriber base continues to maintain its
strong growth trajectory, increasing to 532 million in February 2019, or 45
percent of the total subscriber base, witnessing addition of 10.2 million
during the month. There will be lots of earnings reaction based on the
performance of the companies.
Support and Resistance:
NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,726.15
|
11,623.05
|
11,785.05
|
BSE Sensex
|
39,054.68
|
38,718.67
|
39,243.02
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
1,116.85
|
223.60
|
216.48
|
231.83
|
Yes Bank
|
906.38
|
239.15
|
233.43
|
242.63
|
ONGC
|
565.06
|
168.65
|
166.08
|
170.83
|
SBI
|
467.26
|
310.75
|
305.58
|
313.93
|
Coal India
|
361.81
|
254.00
|
252.17
|
257.07
|
Maruti Suzuki has launched the New Alto, which has been India's best-selling car for 15 consecutive years.
Bajaj Finserv is offering a substantial business loan for CAs of up to Rs 35 lakh, so they can finance the purchase and installation of the latest tax software without breaking into a sweat.
Infosys has entered into partnership with Huawei Cloud to jointly develop solutions around cloud computing services for business organisations.
Power Grid has selected Siemens to modernize the country's first and oldest high voltage direct current link, Vindhyachal.